A huge sales wall of $20,000 can result in a large transfer of wealth from whales to institutions based on current data.
Bitcoin Whales sell 7,188 BTC in 24 hours to institutions like Grayscale MARKET NEWS
Bitcoin whales (BTC) seem to be selling to institutions as the supply side tightens.
Data from several sources show that while more BTC are returning to exchanges this week, large-scale buyers are still creating more demand than supply can meet.
Grayscale exchanges and buy-ins
Statistics from the on-chain analysis service Coin98 confirmed that the investment giant Grayscale bought twice as much Bitcoins as the miners could create in November.
Grayscale Bitcoin buys versus flow in November 2020. Source: Coin98/ Twitter
Together with Square and PayPal, the other major Bitcoin Capital corporate investors that are increasingly demanding BTC shares, Grayscale is creating an imbalance in supply for which price gains are the only logical outcome.
This scenario set the stage for December with Grayscale’s continued purchase of Bitcoin totaling over 7,000 BTC in just 24 hours, the company’s managed Bitcoin assets surpassed 10.5 billion on December 4.
Grayscale Bitcoin buys 6-month chart. Source: Bybt
Simultaneously, this week Bitcoin broke historical records and challenged the $20,000, but then found enormous selling pressure.
Having recovered from lows of $18,100, the asset returned to the $19,000 circle, and now the BTC/USD seems poised for another important test of the level, but the selling momentum remains unusual. With sell walls for $20,000 still firmly established, whales and long-time hunters looking to move out have reliable buyers like Grayscale and other institutions.
Bitcoin BTC/USD selling wall on December 4th. Source: TensorCharts
Evidence points to increased whale flow in exchanges this week, something that coincided with the $20,000 attempt. If sales are already keeping prices down, BTC must be finding its way by transferring whale wealth into the hands of Grayscale and its customers.
Bitcoin exchange holdings 3-year chart. Source: CryptoQuant
CNBC: The rich are „carrying themselves“ in Bitcoin
The phenomenon has even caught the attention of the mainstream media.
„The total of accounts buying more than $1 million in Bitcoin and then taking it off the market skyrocketed,“ CNBC reported Thursday.
„That is an 180% increase from 2017 to this year. Analysts say that this indicates that wealthy investors are accumulating Bitcoin and then storing it offline to store it in a slightly safer place.
Bitcoin addresses in profit historical chart. Source: Glassnode/Twitter
At the same time, the total Bitcoin addresses in profit versus when the currencies were put in them reached new records on Friday, according to the latest Glassnode data.
Meanwhile, news arrived on Wall Street on Thursday that Bitcoin and hundreds of altcoins would compose new S&P Dow Jones crypto indices from January 2021.